QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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|
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(Commission File Number)
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(IRS Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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(
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(Registrant’s telephone number, including area code)
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Title of Each Class
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Trading Symbol
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Name of each exchange on which registered
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Accelerated filer ☐
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Non-accelerated filer ☐
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Smaller reporting company
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Emerging growth company
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PART I - FINANCIAL INFORMATION
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Page
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Item 1.
|
1
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1
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||
2
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||
3
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||
4
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||
5
|
||
Item 2.
|
14
|
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Item 3.
|
24
|
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Item 4.
|
25
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PART II - OTHER INFORMATION
|
||
Item 1.
|
25
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Item 1A.
|
25
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Item 2.
|
25
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Item 3.
|
25
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Item 4.
|
25
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Item 5.
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25
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Item 6.
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26
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Thirteen weeks ended
|
||||||||
April 30,
2022
|
May 1,
2021
|
|||||||
Net sales
|
$
|
|
$
|
|
||||
Cost of sales
|
|
|
||||||
Gross profit
|
|
|
||||||
Selling, general and administrative expenses
|
|
|
||||||
Depreciation and amortization expenses
|
|
|
||||||
Pre-opening expenses
|
|
|
||||||
Operating income
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|
|
||||||
Interest expense (income), net
|
|
(
|
)
|
|||||
Income before income taxes
|
|
|
||||||
Income tax expense
|
|
|
||||||
Net income
|
$
|
|
$
|
|
||||
Earnings per common share:
|
||||||||
Basic
|
$
|
|
$
|
|
||||
Diluted
|
$
|
|
$
|
|
||||
Weighted average common shares outstanding:
|
||||||||
Basic
|
|
|
||||||
Diluted
|
|
|
April 30,
2022
|
May 1,
2021
|
January 29,
2022
|
||||||||||
Assets
|
||||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
||||||
Inventories
|
|
|
|
|||||||||
Accounts receivable
|
|
|
|
|||||||||
Prepaid expenses and other assets
|
|
|
|
|||||||||
Total current assets
|
|
|
|
|||||||||
Property and equipment, net of accumulated depreciation of $
|
|
|
|
|||||||||
Operating lease right-of-use assets
|
|
|
|
|||||||||
Goodwill
|
|
|
|
|||||||||
Trade name
|
|
|
|
|||||||||
Other assets
|
|
|
|
|||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
||||||
Liabilities and Stockholders’ Equity
|
||||||||||||
Current liabilities:
|
||||||||||||
Current portion of long-term debt
|
$
|
|
$
|
|
$
|
|
||||||
Accounts payable
|
|
|
|
|||||||||
Income taxes payable
|
|
|
|
|||||||||
Current portion of operating lease liabilities
|
|
|
|
|||||||||
Accrued expenses and other
|
|
|
|
|||||||||
Total current liabilities
|
|
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|
|||||||||
Revolving credit facility
|
|
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|
|||||||||
Long-term debt
|
|
|
|
|||||||||
Deferred income taxes
|
|
|
|
|||||||||
Long-term operating lease liabilities
|
|
|
|
|||||||||
Other long-term liabilities
|
|
|
|
|||||||||
Total liabilities
|
|
|
|
|||||||||
Stockholders’ equity:
|
||||||||||||
Preferred stock -
|
|
|
|
|||||||||
Common stock -
|
|
|
|
|||||||||
Additional paid-in capital
|
|
|
|
|||||||||
Retained earnings
|
|
|
|
|||||||||
Treasury - common stock, at cost;
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total stockholders’ equity
|
|
|
|
|||||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
$
|
|
Common stock
|
Treasury stock
|
Additional
paid-in
|
Retained
|
Total
stockholders’
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
capital
|
earnings
|
equity
|
||||||||||||||||||||||
Balance as of January 30, 2021
|
|
$
|
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Stock-based compensation expense
|
-
|
|
-
|
|
|
|
|
|||||||||||||||||||||
Proceeds from stock options exercised
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Vesting of restricted stock
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Common shares withheld for taxes
|
(
|
)
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||
Shares repurchased | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Net income
|
-
|
|
-
|
|
|
|
|
|||||||||||||||||||||
Balance as of May 1,
2021
|
|
$
|
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Balance as of January 29,
2022
|
|
$
|
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Stock-based compensation expense
|
-
|
|
-
|
|
|
|
|
|||||||||||||||||||||
Proceeds from stock options exercised
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Vesting of restricted stock
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Common shares withheld for taxes
|
(
|
)
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||
Shares repurchased
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Net income
|
-
|
|
-
|
|
|
|
|
|||||||||||||||||||||
Balance as of April 30,
2022
|
|
$
|
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
Thirteen weeks ended
|
||||||||
April 30,
2022
|
May 1,
2021
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization of property and equipment
|
|
|
||||||
Amortization of debt issuance costs
|
|
|
||||||
Gain on sale of assets
|
(
|
)
|
(
|
)
|
||||
Deferred income tax provision
|
|
|
||||||
Stock-based compensation expense
|
|
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Inventories
|
(
|
)
|
(
|
)
|
||||
Accounts receivable
|
|
|
||||||
Prepaid expenses and other assets
|
|
|
||||||
Accounts payable
|
(
|
)
|
(
|
)
|
||||
Income taxes payable
|
|
|
||||||
Accrued expenses and other liabilities
|
(
|
)
|
(
|
)
|
||||
Net cash (used in) provided by operating activities
|
(
|
)
|
|
|||||
Cash flows from investing activities:
|
||||||||
Purchases of property and equipment
|
(
|
)
|
(
|
)
|
||||
Proceeds from sale of property and equipment
|
|
|
||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayments on finance leases
|
(
|
)
|
(
|
)
|
||||
Proceeds from stock option exercises
|
|
|
||||||
Common shares withheld for taxes
|
(
|
)
|
(
|
)
|
||||
Payment for shares repurchased
|
|
(
|
)
|
|||||
Net cash used in financing activities
|
(
|
)
|
(
|
)
|
||||
Net (decrease) increase in cash and cash equivalents
|
(
|
)
|
|
|||||
Cash and cash equivalents at the beginning of the period
|
|
|
||||||
Cash and cash equivalents at the end of the period
|
$
|
|
$
|
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
|
$
|
|
||||
Income taxes
|
$
|
|
$
|
|
||||
Non-cash investing activities:
|
||||||||
Accrued purchases of property and equipment
|
$
|
|
$
|
|
(1) |
Organization and Summary of Significant Accounting Policies
|
(a) |
Description of Business
|
(b) |
Fiscal Year
|
(c) |
Basis of Presentation
|
(d) |
Use of Estimates
|
(e) |
Fair Value Disclosures
|
● |
Level 1 inputs are quoted prices available for identical assets and liabilities in active markets.
|
● |
Level 2 inputs are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets and liabilities in active markets or other inputs
which are observable or can be corroborated by observable market data.
|
● |
Level 3 inputs are less observable and reflect the Company’s assumptions.
|
(f) |
Impact of the Novel Coronavirus (“COVID-19”)
|
(2) |
Net Sales
|
Thirteen weeks ended
|
||||||||
April 30,
2022
|
May 1,
2021
|
|||||||
Beginning balance
|
$
|
|
$
|
|
||||
Revenue deferred
|
|
|
||||||
Revenue recognized
|
(
|
)
|
(
|
)
|
||||
Ending balance
|
$
|
|
$
|
|
Thirteen weeks ended
|
||||||||
April 30,
2022
|
May 1,
2021
|
|||||||
Beginning balance
|
$
|
|
$
|
|
||||
Gift card issuances
|
|
|
||||||
Gift card redemption and breakage
|
(
|
)
|
(
|
)
|
||||
Ending balance
|
$
|
|
$
|
|
(3) |
Earnings per Common Share
|
Thirteen weeks ended
|
||||||||
April 30,
2022
|
May 1,
2021
|
|||||||
Net income
|
$
|
|
$
|
|
||||
Weighted average number of common shares outstanding – Basic
|
|
|
||||||
Incremental shares from the assumed exercise of outstanding stock options and vesting of restricted stock units
|
|
|
||||||
Weighted average number of common shares outstanding – Diluted
|
|
|
||||||
Earnings per common share – Basic
|
$
|
|
$
|
|
||||
Earnings per common share – Diluted
|
$
|
|
$
|
|
(4) |
Commitments and Contingencies
|
2022
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
Thereafter
|
|
|||
Total undiscounted lease payments (1)
|
|
|||
Less: Imputed interest
|
(
|
)
|
||
Total lease obligations
|
|
|||
Less: Current obligations under leases
|
(
|
)
|
||
Long-term lease obligations
|
$
|
|
(1) |
|
Thirteen weeks ended
|
||||||||
April 30,
2022
|
May 1,
2021
|
|||||||
Cash paid for operating leases
|
$
|
|
$
|
|
||||
Operating lease cost
|
|
|
||||||
Variable lease cost
|
|
|
||||||
Non-cash right-of-use assets obtained in exchange for lease obligations
|
|
|
||||||
Weighted-average remaining lease term
|
|
|
||||||
Weighted-average discount rate
|
|
%
|
|
%
|
(5) |
Accrued Expenses and Other
|
April 30,
2022
|
May 1,
2021
|
January 29,
2022
|
||||||||||
Compensation and benefits
|
$
|
|
$
|
|
$
|
|
||||||
Deferred revenue
|
|
|
|
|||||||||
Insurance |
|
|
|
|||||||||
Sales and use taxes
|
|
|
|
|||||||||
Real estate related
|
|
|
|
|||||||||
Freight
|
|
|
|
|||||||||
Advertising |
|
|
|
|||||||||
Other
|
|
|
|
|||||||||
$
|
|
$
|
|
$
|
|
(6) |
Debt Obligations and Financing Arrangements
|
(7) |
Income Taxes
|
(8) |
Equity Incentive Plans
|
Number
of options
|
Weighted
average
exercise
price
|
Weighted
average
remaining
contractual
term (years)
|
||||||||||
Outstanding at January 29,
2022
|
|
$
|
|
|||||||||
Granted
|
|
|
||||||||||
Forfeited
|
(
|
)
|
|
|||||||||
Exercised
|
(
|
)
|
|
|||||||||
Outstanding at April 30,
2022
|
|
|
|
|||||||||
Exercisable at April 30,
2022
|
|
|
|
Thirteen weeks ended
|
||||||||
April 30,
2022
|
May 1,
2021
|
|||||||
Risk-free interest rate
|
|
%
|
|
%
|
||||
Expected dividend yield
|
|
|
||||||
Expected life (years)
|
|
|
||||||
Expected volatility
|
|
%
|
|
%
|
Number
of shares
|
Weighted
average
grant date
fair value
|
|||||||
Non-vested balance at January 29, 2022
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Forfeited
|
(
|
)
|
|
|||||
Vested
|
(
|
)
|
|
|||||
Non-vested balance at April 30, 2022
|
|
|
(9) |
Common Stock
|
(10) |
Transactions with Affiliated and Related Parties
|
(11) |
Subsequent Event
|
ITEM 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
• |
growing our merchant buying team to increase our access to brand name/closeout merchandise;
|
• |
adding members to our senior management team;
|
• |
expanding the capacity of our distribution centers to their current 2.2 million square feet; and
|
• |
investing in information technology, accounting, and warehouse management systems.
|
• |
growing our store base;
|
• |
increasing our offerings of great bargains; and
|
•
|
leveraging and expanding Ollie’s Army.
|
• |
have been remodeled while remaining open;
|
• |
are closed for five or fewer days in any fiscal month;
|
• |
are closed temporarily and relocated within their respective trade areas; and
|
• |
have expanded, but are not significantly different in size, within their current locations.
|
Thirteen weeks ended
|
||||||||
April 30,
2022
|
May 1,
2021
|
|||||||
( dollars in thousands)
|
||||||||
Condensed consolidated statements of income data:
|
||||||||
Net sales
|
$
|
406,666
|
$
|
452,492
|
||||
Cost of sales
|
265,341
|
269,882
|
||||||
Gross profit
|
141,325
|
182,610
|
||||||
Selling, general and administrative expenses
|
116,273
|
104,370
|
||||||
Depreciation and amortization expenses
|
5,247
|
4,484
|
||||||
Pre-opening expenses
|
2,660
|
2,535
|
||||||
Operating income
|
17,145
|
71,221
|
||||||
Interest expense (income), net
|
109
|
(25
|
)
|
|||||
Income before income taxes
|
17,036
|
71,246
|
||||||
Income tax expense
|
4,513
|
16,026
|
||||||
Net income
|
$
|
12,523
|
$
|
55,220
|
||||
Percentage of net sales (1):
|
||||||||
Net sales
|
100.0
|
%
|
100.0
|
%
|
||||
Cost of sales
|
65.2
|
59.6
|
||||||
Gross profit
|
34.8
|
40.4
|
||||||
Selling, general and administrative expenses
|
28.6
|
23.1
|
||||||
Depreciation and amortization expenses
|
1.3
|
1.0
|
||||||
Pre-opening expenses
|
0.7
|
0.6
|
||||||
Operating income
|
4.2
|
15.7
|
||||||
Interest expense (income), net
|
—
|
—
|
||||||
Income before income taxes
|
4.2
|
15.7
|
||||||
Income tax expense
|
1.1
|
3.5
|
||||||
Net income
|
3.1
|
%
|
12.2
|
%
|
||||
Select operating data:
|
||||||||
Number of new stores
|
9
|
11
|
||||||
Number of closed stores
|
(1
|
)
|
(2
|
)
|
||||
Number of stores open at end of period
|
439
|
397
|
||||||
Average net sales per store (2)
|
$
|
935
|
$
|
1,150
|
||||
Comparable stores sales change
|
(17.3
|
)%
|
18.8
|
%
|
(1) |
Components may not add to totals due to rounding.
|
(2) |
Average net sales per store represents the weighted average of total net weekly sales divided by the number of stores open at the end of each week for
the respective periods presented.
|
Thirteen weeks ended
|
||||||||
April 30,
2022
|
May 1,
2021
|
|||||||
(in thousands)
|
||||||||
Net income
|
$
|
12,523
|
$
|
55,220
|
||||
Interest expense (income), net
|
109
|
(25
|
)
|
|||||
Depreciation and amortization expenses (1)
|
6,708
|
5,918
|
||||||
Income tax expense
|
4,513
|
16,026
|
||||||
EBITDA
|
23,853
|
77,139
|
||||||
Non-cash stock-based compensation expense
|
2,388
|
2,020
|
||||||
Adjusted EBITDA
|
$
|
26,241
|
$
|
79,159
|
(1) |
Includes depreciation and amortization relating to our distribution centers, which is included within cost of sales on our condensed consolidated statements of income.
|
Thirteen weeks ended
|
||||||||
April 30,
2022
|
May 1,
2021
|
|||||||
(in thousands)
|
||||||||
Net cash (used in) provided by operating activities
|
$
|
(31,516
|
)
|
$
|
40,123
|
|||
Net cash used in investing activities
|
(9,617
|
)
|
(9,412
|
)
|
||||
Net cash used in financing activities
|
(381
|
)
|
(5,670
|
)
|
||||
Net (decrease) increase in cash and cash equivalents
|
$
|
(41,514
|
)
|
$
|
25,041
|
ITEM 4. |
CONTROLS AND PROCEDURES
|
ITEM 1. |
LEGAL PROCEEDINGS
|
ITEM 1A. |
RISK FACTORS
|
ITEM 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ITEM 3. |
DEFAULTS UPON SENIOR SECURITIES
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ITEM 4. |
MINE SAFETY DISCLOSURES
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ITEM 5. |
OTHER INFORMATION
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ITEM 6. |
EXHIBITS
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Exhibit No.
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Description of Exhibits
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*31.1
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Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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**101.INS
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Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
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**101.SCH
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Inline XBRL Taxonomy Extension Schema Document.
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**101.CAL
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Inline XBRL Taxonomy Extension Calculation Linkbase Document.
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**101.DEF
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Inline XBRL Taxonomy Extension Definition Linkbase Document.
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**101.LAB
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Inline XBRL Taxonomy Extension Label Linkbase Document.
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**101.PRE
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Inline XBRL Taxonomy Extension Presentation Linkbase Document.
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104
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Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
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*
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Filed herewith.
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**
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Submitted electronically with this Report.
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†
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Previously filed.
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OLLIE’S BARGAIN OUTLET HOLDINGS, INC.
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Date: June 8, 2022
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/s/
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Jay Stasz
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Jay Stasz
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Senior Vice President and
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Chief Financial Officer
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(Principal Financial and Accounting Officer)
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